Canada unemployment unchanged in October at 5.5%

Canadian Dollar Index Price Chart

Canadian Dollar Index Price Chart

Stephen Brown, senior Canada economist at Capital Markets, says the lost jobs aren't a huge concern, but weakness in manufacturing is something to keep an eye on.

(MENAFN - Baystreet.ca) Figures released Friday by Statistics Canada shows the job market stagnated unexpectedly in October, losing 1,800 net positions, while the unemployment rate remained at 5.5%.

"Overall, employment is still up 2.4 per cent year-over-year, but that's come in contrast to much softer GDP and hours worked data".

"In the big three categories of job growth, wages and unemployment, B.C. performed exceptionally well in the month of October".

"But we continued to see strong wage gains, at over twice headline inflation, which reflects the fact that Canadian businesses continue to cite labour shortages as the most important constraint on their growth".

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Service producers recorded a rise in employment by 39k and goods-producers saw a fall in employment by 40.9k.

The losses were offset in part by an increase of 20,000 jobs working in public administration and 18,000 in finance, insurance, real estate, rental and leasing.

Following the lackluster Canadian jobs report and housing data the probability that a Bank of Canada interest rate cut will be delivered at the central bank's next meeting jumped to 21.7%, which is noticeably from a 14.8% reading the day prior, according to overnight swaps pricing. In a separate release, Statistics Canada said the value of Canadian building permits dropped by a larger-than-expected 6.5 per cent in September to $8.3 billion because of declines in the residential sector.

Regionally, B.C. added 15,000 jobs, while Newfoundland and Labrador added 2,700 jobs. Election-related hiring helped offset a some of the declines with the public-sector adding 28,700 jobs despite a drop in private-sector and self-employment. Economists had forecast a 2.0 percent fall.

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